Shrimp exports to the US growing in September 2015

(vasep.com.vn) Vietnam shrimp exports in Q3/2015 reported a growth compared to the two previous quarters. Shrimp exports reached US$840.8 million in Q3, up from US$ 573.9 million in Q1 and US$ 716.2 million in Q2 but still down compared to the same period in 2014. From July to September, shrimp shipments increased steadily from US$ 263.5 million to nearly US$ 305 million. The cumulative figure in the first 9 months of this year hit US$ 2.1 billion, down 27.4% from the same period of 2014.

In Japan, EU, South Korea, the major importing markets, economic downturn and sharp devaluation of their currencies caused weak demand and therefore, import price declined. Meanwhile, currencies of India, Indonesia, Ecuador and China depreciated along with a surge in shrimp supply in South East Asia make prices lower. As a result,  shrimp exports in Q3 and Jan-Sep 2015 reduced.

In the first 9 months of 2015, whiteleg shrimp was still the main export item of Vietnam. Exports of whiteleg shrimp decreased 27.5% year on year to US$ 1.2 billion, accounting for 58.2% of Vietnam's total shrimp exports. Black tiger shrimp exports dropped by 31.7% to US$ 711.4 million, occupying 33.4% of Vietnam's total shrimp exports.

Frozen raw black tiger shrimp and whiteleg shrimp made up the largest proportion among Vietnam’s total shrimp exports. Processed marine shrimp was exported under form  accounted a small percentage.

Until September 2015, the proportion of whiteleg shrimp was equal to the same period of 2014; the proportion of black tiger shrimp downed 2.1% year on year while that of marine shrimp up 2.1% year on year.

Between January and September 2015, Vietnam shrimp exporters made effort to expand their markets. Vietnam shrimp was destined to 92 markets, adding 6 more markets from the same period of 2014.

Top 10 largest markets included the US, Japan, EU, China, South Korea, Canada, Australia, Taiwan, ASEAN and Switzerland, representing 95 percent of total shrimp exports.

Drastic decline was seen in shrimp exports to main markets such as the US, Japan and EU. On the other hand, some single markets witnessed a year-on-year rise. Exports to Malaysia surged 40.4%, exports to the U.K upped 16%, those to Hong Kong and Singapore increased 2.6% and 0.7% year on year, respectively. It is remarkable that demand for warmwater shrimp from the U.K, the largest market of Vietnam shrimp in EU is increasingly high.

Shrimp sales to the US in September 2015 touched US$77.6 million, up nearly 29% compared to August 2015 and up 3.5% year on year. Total result in Q3/2015 to the market reached US$188.8 million, up 62.3% from Q1/2015 and up 29% from Q2/2015 but down 35.6% year on year.

Shrimp exports to the US in Sep 2015 reported the highest growth compared to all other months so far in the year as US importers built inventory to meet demand for year-end holidays. Final result of the ninth anti-dumping duty administrative reviews on frozen shrimp imported from Vietnam with lower duty rate than preliminary results announced in March 2015 and final result of POR8 can be a factor that helps boost shrimp sales to the market in the last months of the year.

In the first 9 months of 2015, shrimp sales to the US reached US$ 451.5 million, down 45% year on year. Sharp appreciation of US dollar against other currencies encouraged shrimp exporters to boost exporting to the U.S. which caused high pressure on Vietnam shrimp price.  

Shrimp exports to EU in Sep 2015 reached US$ 55.9 million, up 13.3% from Aug 2015. However, exports in Q3/2015 downed 24.7% year on year to US$157 million. The cumulative figure through Sep 2015 hit US$ 403.3 million, down 18.7% year on year.

Demand from main markets reduced while global shrimp price for the year to date has dropped by 30%. Vietnam shrimp’s competitiveness and its sales in Jan-Sep 2015 significantly was affected by fluctuations in exchange rate of US dollar against other currencies. In Q4/2015, Vietnam shrimp exports are expected to touch US$800 million.


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  • SPECIALIST ON SHRIMP MARKET

Ms Kim Thu

Email: kimthu@vasep.com.vn

Tel: 84.24.3771.5055 (ext 203)

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